A notary was ordered by a court to pay €186,000 for her “gross negligence” when counter-signing a power of attorney as it later transpired that the person supposedly issuing the proxy had never given his consent.

The case dates back to 2004 when Joseph Mamo had loaned Emanuel Gatt €186,344 by means of a notarial deed, which was secured against a special hypothec on a Birkirkara property. Mr Gatt, however, was represented by Christopher Gatt in virtue of a power of attorney issued by notary Rachelle Farrugia Buhagiar.

Doubts about the power of attorney emerged sometime later when Emanuel Gatt refused to pay the loan, telling Mr Mamo that he had never issued the power of attorney to sign such a deal on his behalf.

The court heard that when Mr Mamo tried to force the judicial sale by auction of the Birkirkara property by means of a court case, that court ruled that the signature on the power of attorney was not that of Emanuel Gatt.  The court had ruled that the notary’s counter-signature was void and annulled the deed of loan.

Subsequently Mr Mamo instituted proceedings in the Civil Court requesting damages from notary Farrugia Buhagiar.

In yesterday’s judgment Mr Justice Silvio Meli said the notary was obliged to ensure the signatures on the power of attorney were effected in her presence. In this case, the notary had admitted before the court that she had counter-signed the document assuming it had been signed by Emanuel Gatt.

While noting that she had not acted fraudulently, the court pointed out that the notary’s actions were the result of over familiarity with the Gatt family and amounted to “gross negligence”.

Consequently it upheld Mr Mamo’s request and ordered notary Farrugia Buhagiar to pay him the sum he had loaned.